Our IMPACT Funds (NYSE: ICAN)
(see “Insights” for additional information)

What is Impact Investing?

According to the Global Impact Investing Network, it is “investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return.”

To provide capital to address the world’s most pressing challenges in sectors such as sustainable agriculture, renewable energy, conservation, affordable and accessible basic services including housing, healthcare, and education.

Why is Impact Investing important?

The philosophy is that as we invest, we should take a longer view and do so in companies that benefit society and the planet.

Who makes Impact Investments?

Pension funds, private foundations, insurance firms, family offices, banks, and individual investors.

How does Impact differ from ESG?

Funds that offer environmental, social, and governance (ESG) products typically assign an ESG rating/score to firms based on multiple factors. As there is no accepted definition for ESG, ratings can vary significantly depending on the methodology employed. A company can have a high ESG rating but not be seen as really making a difference. The SerenityShares' vision of impact investing starts with 20 societal, social, and environmental challenges and identifies companies which generate revenues from supplying products or services to these "Impact Activities".

Why is ICAN important?

Most impact investments historically have been through private equity or by purchasing targeted bonds. Institutional investors have noted a shortage of high quality investment opportunities across the risk/return spectrum--especially in public equity; along with difficulty in exiting private investments. ICAN, using an ETF structure, opens up impact investing in a liquid and transparent manner.

How big is the Impact Market?

The number is hard to quantify, however, the US Forum for Sustainable and Responsible Investment puts total SRI assets at $6.5 Trillion globally.

How are your holdings chosen?

Beginning with a list of all 6500+ companies listed on the NYSE and NASDAQ, screens are applied to (a) eliminate companies involved with tobacco; weapons; oil, gas, and coal exploration; and (b) select companies that meet our market cap (>$1.5B), price (>$5/sh), and liquidity screens. We then review all remaining companies to identify firms whose activities have a direct, beneficial impact to the societal, social, and environmental challenges we’ve identified. For more information, please read the prospectus.

Why did you choose these specific companies?

As the Index is passive, we did not technically choose any companies, these were the ones that resulted from our varied screens. Unfortunately, the notion of “good” is one that is subjective. An explanation for each included firm can be found under “Insights.” Feel free to send us an email if you have comments.

How often do you make changes to the Index?

The index is reviewed annually and rebalanced quarterly.

How is the Index calculated?

The index follows a modified capitalization weighting formula at the time of our rebalancing to ensure that large companies don’t dominate the holdings and smaller firms aren’t ignored.

For more information, please read the prospectus.

How to Invest in Our Funds:

How do I invest in SerenityShares ETFs?

SerenityShares ETFs are listed on the NYSE Arca, and trade in a similar way that shares of publicly traded companies do. Investors can buy and sell SerenityShares ETFs through traditional brokerage accounts using the ticker, ISIN, or CUSIP identifier during normal NYSE exchange trading hours.

Are options available?

Not at the present time.

Dividends / Capital Gains / Taxes

How often does SerenityShares distribute dividends?

The Funds pay out dividends, if any, from their net investment income to investors at least annually.

How often does SerenityShares distribute capital gains?

Capital gains, if any, would be distributed annually.

Can dividends from SerenityShares ETFs be reinvested?

This is a question for your broker. Brokers may make dividend reinvestment services available to their customers.

What are the tax advantages of SerenityShares ETFs?

ETFs that track a passive index are less likely to realize capital gains that must be paid to investors on an annual basis. The creation / redemption process leads to in-kind transactions, the result of which is a non-taxable event for the fund. Additionally, passive indexes tend to have lower portfolio turnover, and are therefore less likely to realize capital gains. Since SerenityShares ETFs are new, there is no history of distributions.

Which tax forms will investors receive?

Your broker will provide a 1099.

Any tax or legal information provided is not exhaustive. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Neither the Fund nor any of its representatives may give legal or tax advice.